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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999
Commission File Number 1-1136
BRISTOL-MYERS SQUIBB COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
22-079-0350
(IRS Employer Identification No.)
345 Park Avenue, New York, N.Y. 10154
(Address of principal executive offices)
Telephone: (212) 546-4000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]
At March 31, 1999, there were 1,985,837,447 shares outstanding of the Registrant's $.10 par value Common Stock.
BRISTOL-MYERS SQUIBB COMPANY
INDEX TO FORM 10-Q
March 31, 1999
Page No.
-----------
Part I - Financial Information:
Financial Statements (Unaudited):
Consolidated Balance Sheet - March 31, 1999
and December 31, 1998
Consolidated Statement of Earnings and Comprehensive Income
for the three months ended March 31, 1999 and 1998
2 - 3
4
Consolidated Statement of Cash Flows for the three
months ended March 31, 1999 and 1998
5
Notes to Consolidated Financial Statements
6
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Part II - Other Information
7 - 11
12 - 13
Signatures
14
-1-
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED BALANCE SHEET - ASSETS
(Unaudited, in millions except share amounts)
Current Assets:
Cash and cash equivalents
Time deposits and marketable
securities
Receivables, net of allowances
Finished goods
Work in process
Raw and packaging materials
Inventories
Prepaid expenses
Total Current Assets
Property, Plant and Equipment
Less: Accumulated depreciation
Insurance Recoverable
Excess of cost over net tangible assets
received in business acquisitions
Other Assets
Total Assets
-2-
March 31,
1999
------------
December 31,
1998
------------
$ 2,003
$ 2,244
280
3,164
285
3,190
1,229
376
350
---------1,955
1,209
236
428
---------1,873
1,095
---------8,497
----------
1,190
---------8,782
----------
7,542
7,508
3,113
---------4,429
----------
3,079
---------4,429
----------
509
523
1,568
1,587
983
----------
951
----------
$15,986
==========
$16,272
==========
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED BALANCE SHEET LIABILITIES AND STOCKHOLDERS' EQUITY
(Unaudited, in millions except share amounts)
Current Liabilities:
Short-term borrowings
Accounts payable
Accrued expenses
Product liability
U.S. and foreign income taxes payable
March 31,
1999
-----------
Total Current Liabilities
Other Liabilities
Long-Term Debt
Total Liabilities
Stockholders' Equity:
Preferred stock, $2 convertible series:
Authorized 10 million shares; issued and
outstanding 11,337 in 1999 and 11,684 in
1998, liquidation value of $50 per share
Common stock, par value of $.10 per share:
Authorized 4.5 billion shares; issued
2,189,316,218 in 1999 and 2,188,316,808
in 1998
Capital in excess of par value of stock
Cumulative translation adjustment
$
535
1,271
2,188
569
756
---------5,319
Less cost of treasury stock - 203,478,771
common shares in 1999 and 199,550,532 in 1998
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
-3-
$
482
1,380
2,302
877
750
---------5,791
1,548
1,541
1,369
---------8,236
----------
1,364
---------8,696
----------
-
-
219
219
1,184
1,075
(721)
Retained earnings
December 31,
1998
------------
(622)
13,179
---------13,861
12,540
---------13,212
6,111
---------7,750
---------$15,986
==========
5,636
---------7,576
---------$16,272
==========
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
AND COMPREHENSIVE INCOME
(Unaudited, in millions of dollars except per share amounts)
Three Months Ended
March 31,
------------------1999
1998
---------------
EARNINGS
-------Net Sales
Expenses:
Cost of products sold
Marketing, selling, administrative
and other
Advertising and product promotion
Research and development
Provision for restructuring
Gain on sale of business
$4,854
-------
$4,446
------
1,305
1,152
1,121
529
423
------3,378
------1,476
1,048
571
383
125
(125)
------3,154
------1,292
410
------$1,066
=======
365
------$ 927
=======
$.54
$.53
$.47
$.46
Average Common Shares Outstanding (in millions)
Basic
Diluted
1,985
2,029
1,987
2,035
Dividends Per Common Share
$.215
$.195
$1,066
$ 927
Earnings Before Income Taxes
Provision for income taxes
Net Earnings
Earnings Per Common Share
Basic
Diluted
COMPREHENSIVE INCOME
-------------------Net Earnings
Other Comprehensive Income:
Foreign currency translation
Tax effect
(104)
5
------(99)
------$ 967
=======
Total Other Comprehensive Income
Comprehensive Income
-4-
(104)
16
------(88)
------$ 839
=======
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions of dollars)
Three Months Ended
March 31,
-----------------------1999
1998
-----------------
Cash Flows From Operating Activities:
Net earnings
Depreciation and amortization
Provision for restructuring
Gain on sale of businesses
Other operating items
Receivables
Inventories
Accounts payable
Accrued expenses
Product liability
Insurance recoverable
Income taxes
Other assets and liabilities
Net Cash Provided by Operating Activities
Cash Flows From Investing Activities:
Proceeds from sales of time deposits and
marketable securities
Purchases of time deposits and marketable
securities
Additions to fixed assets
Proceeds from sale of business
Other, net
$ 1,066
167
(34)
(14)
(113)
(105)
(132)
(318)
14
258
(68)
-------721
-------13
$
927
155
125
(125)
(6)
(100)
(95)
89
8
(169)
21
163
(113)
-------880
-------87
(9)
(122)
(28)
--------
(70)
(154)
165
18
--------
(146)
--------
46
--------
59
(4)
(24)
(410)
(427)
-------(806)
--------
19
112
70
(625)
(388)
-------(812)
--------
Effect of Exchange Rates on Cash
(10)
--------
(5)
--------
(Decrease) / Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
(241)
2,244
-------$2,003
========
109
1,456
-------$1,565
========
Net Cash (Used in)/Provided by Investing
Activities
Cash Flows From Financing Activities:
Short-term borrowings
Long-term debt
Issuances of common stock under stock plans
Purchases of treasury stock
Dividends paid
Net Cash Used in Financing Activities
Cash and Cash Equivalents at End of Period
-5-
BRISTOL-MYERS SQUIBB COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Basis of Presentation
In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting only of
normal adjustments) necessary for a fair presentation of the financial position of Bristol-Myers Squibb Company (the "Company") at March 31,
1999 and December 31, 1998, the results of operations for the three months ended March 31, 1999 and 1998, and cash flows for the three
months ended March 31, 1999 and 1998. These consolidated financial statements should be read in conjunction with the consolidated financial
statements and the related notes included in the Company's 1998 Annual Report on Form 10-K.
Industry Segments
(in millions)
-----------------
Medicines Products
Beauty Care Products
Nutritional Products
Medical Devices
Other
Total Company
Three Months Ended March 31,
---------------------------------------Net Sales
Earnings Before Taxes
-----------------------------------1999
1998
1999
1998
--------------------$3,431
$3,057
$1,001
$894
572
534
65
71
449
447
101
95
402
408
72
67
237
165
--------------------$4,854
$4,446
$1,476
$1,292
======
======
======
======
Included in earnings before taxes of each segment is a cost of capital charge. The offset to the cost of capital charge is included in Other. In
addition, Other principally consists of interest income, interest expense, certain administrative expenses and allocations to the industry
segments for certain corporate programs. In 1998, Other also includes the gain on sale of a business of $125 million and a provision for
restructuring of $125 million. In addition, the segment information reflects certain internal organizational changes made in 1999. Prior year
data has been restated accordingly.
-6-
BRISTOL-MYERS SQUIBB COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
First Quarter Results of Operations
Industry Segments
Worldwide sales for the first quarter of 1999 increased 9% over the prior year to $4,854 million, which included double digit or greater growth
for 16 major products across all segments. The consolidated sales growth resulted from a 7% increase due to volume and a 2% increase due to
changes in selling prices. Foreign exchange rate fluctuations had no effect on sales for the quarter. Domestic sales increased 13% and
international sales increased 4% (3% excluding the effect of foreign exchange). On a continuing basis, first quarter sales increased 10% over
the prior year excluding divested businesses.
Sales in the medicines products segment, which is the largest segment at 71% of total company sales, increased 12% over the first quarter of
1998 to $3,431 million. Pharmaceutical sales increased 15% and consumer medicines sales increased 5%. Sales growth resulted from a 10%
increase in volume, and a 2% increase in selling prices. Foreign exchange rate fluctuations had no effect on sales for the first quarter. Domestic
pharmaceutical sales increased 21% and international sales increased 5%. Sales were adversely affected by economic downturns in Brazil and
Mexico.
Sales of cardiovascular drugs, the largest product group in the segment, increased 15% to $921 million (14% excluding foreign exchange).
Sales of PRAVACHOL*, a cholesterol-lowering agent and the Company's largest selling product, increased 9% to $486 million. Domestic
sales of PRAVACHOL* increased 8% to $323 million and international sales increased 13% to $163 million (11% excluding foreign
exchange). Sales of the anti- hypertensive MONOPRIL*, a second generation angiotensin converting enzyme (ACE) inhibitor with once-a-day
dosing, increased 12% to $106 million. PLAVIX, a platelet aggregation inhibitor for the reduction of stroke, heart attack and vascular death in
atherosclerotic patients with recent stroke, recent heart attack or peripheral arterial disease, reached sales of $88 million for the quarter.
AVAPRO, an angiotensin II receptor blocker for the treatment of hypertension, had sales of $50 million. AVAPRO and PLAVIX are
cardiovascular products that were launched from the Bristol- Myers Squibb and Sanofi S.A. joint venture. Sales growth for these cardiovascular
products was partially offset by a 26% decline in CAPOTEN* sales due to the loss of patent exclusivity in Europe.
Sales of anti-cancer drugs increased 28% to $835 million. Sales of TAXOL(r)* (paclitaxel), the Company's leading anti-cancer agent, increased
31% to $329 million as the product continues to benefit from increased use in breast cancer and non-small cell lung cancer. In April 1999, the
Company applied for regulatory approval to extend the use of TAXOL* to treat breast cancer patients following surgery. Sales of
PARAPLATIN*, an anti-cancer agent used in combination
* Indicates brand names of products which are registered trademarks owned by the Company.
-7-
with other chemotherapy agents, increased 16% to $149 million. Sales in the Oncology Therapeutics Network, a specialty distributor of
anti-cancer medicines and related products, increased 44% to $201 million.
Anti-infective drug sales of $633 million increased 7% over the prior year. ZERIT* and VIDEX*, the Company's two anti-retroviral agents,
increased 17% to $152 million and 27% to $45 million, respectively. ZERIT* is the most commonly prescribed thymidine nucleoside reverse
transcriptase inhibitor in HIV therapy in most major markets in the world. Sales of CEFZIL*, used in the treatment of respiratory infections and
the treatment of sinusitis, increased 19% to $142 million. Sales of MAXIPIME*, a fourth generation injectable cephalosporin, were $30
million, an increase of 33% over the prior year. Effective January 1, 1999, Dura Pharmaceuticals, Inc. was appointed the exclusive distributor
for MAXIPIME* in the United States.
Central nervous system drug sales of $268 million decreased 4% with sales in BUSPAR*, an anti-anxiety agent, and SERZONE*, an
anti-depressant, decreasing 10% to $131 million, and 1% to $63 million, respectively.
GLUCOPHAGE, the leading branded oral medication for the treatment of non- insulin dependent (type 2) diabetes, continued its strong growth
rate with sales increasing 55% to $282 million. In April 1999, the Company entered into an agreement with SmithKline Beecham to
co-promote AVANDIA in the United States for the treatment of type 2 diabetes.
In March 1999, the Company completed a regulatory filing with the U.S. Food and Drug Administration (FDA) to gain marketing approval for
ORZEL*, the first oral therapy for colorectal cancer.
Analgesic sales increased 9% to $192 million primarily due to increases in products from the Company's UPSA group including
EFFERALGAN*, an effervescent analgesic, which increased 26% to $51 million. Sales of EXCEDRIN* decreased 11% to $59 million coming
off significant increases in 1998 due to the launch of EXCEDRIN* MIGRAINE, the first and only non-prescription medication approved for
relief of migraine pain. BUFFERIN* sales of $29 million increased 26% due to increased sales in Japan.
Medicines segment margin on earnings before taxes remained constant at 29.2%, as increases, as a percentage of sales, in cost of products sold
due to a product mix shift to lower margin products were offset by decreases, as a percentage of sales, in advertising and promotion and sales
force expenses.
-8-
Sales in the beauty care products segment increased 7% (8% excluding the effect of foreign exchange) to $572 million, coming off comparative
growth in 1998 of 27% due to the acquisition of Redmond Products, Inc. in January 1998 and the launch of HERBAL ESSENCES* into
international markets. The sales growth of 7% reflects a 6% increase due to volume, a 2% increase due to changes in selling prices and a 1%
decrease due to the effect of foreign exchange. Clairol continues to be the number one hair products company in the U.S. in part due to the
January 1998 acquisition of the Redmond AUSSIE* brand which has contributed $29 million to sales in the quarter. AUSSIE* KIDS, hair
products for children, was launched in March 1999. HERBAL ESSENCES*, the number two brand in the U.S. shampoo/conditioner category
after only three years on the market and number three in body wash after two years on the market, continued its strong growth, increasing 28%
to $164 million. HERBAL ESSENCES* FACE, a line of skin care products, was launched in March 1999. Sales of DAILY DEFENSE*
increased 101% to $34 million for the first quarter following its launch into international markets, and REVITALIQUE*, a new premium
permanent haircolor launched in June 1998, contributed $11 million to sales.
Beauty care segment margin on earnings before taxes decreased to 11.4% from 13.3%, as increases, as a percentage of sales, in cost of products
sold and advertising expenses were partially offset by decreases, as a percentage of sales, in promotional expenses.
Sales in the nutritional products segment remained at prior year levels at $449 million (an increase of 1% excluding the effect of foreign
exchange). Domestic sales growth of 6% was offset by the adverse effects of economic downturns in Asian markets. Nutritional growth reflects
a 1% increase due to volume and a 1% decrease due to the effect of foreign exchange. Changes in selling prices had no effect on sales for the
first quarter. The Company's Mead Johnson subsidiary continues to build on its U.S. and worldwide leadership position in the infant formula
market. Total infant formula sales were $318 million for the first quarter of 1999, an increase of 3% from prior year levels. ENFAMIL*
increased 5% to $179 million and total specialty infant formulas increased 1% to $111 million. BOOST* an adult nutritional supplement also
contributed to sales growth, increasing 16% to $23 million. In March 1999, Mead Johnson Nutritionals introduced VIACTIV* Soft Calcium
Chews to address women's needs for a convenient, great-tasting calcium supplement.
Nutritional segment margin on earnings before taxes increased to 22.5% from 21.3%, as a result of decreases, as a percentage of sales, in
general administrative and other marketing expenses, offset by increases, as a percentage of sales, in the cost of products sold.
Medical device segment sales increased 3% to $402 million (1% excluding the effect of foreign exchange), excluding sales from a 1998
distribution agreement with the acquirer of Zimmer's divested arthroscopy and surgical powered instrument business. On this basis sales
increased 2% due to the effect of foreign exchange and 1% due to changes in selling prices. Zimmer sales increased 6% to $238 million (4%
excluding foreign exchange) excluding sales from the 1998 distribution agreement. Knee joint replacement sales increased 9% to $94 million
and hip replacement sales increased 8% to $71 million. ConvaTec's sales decreased 1% to $164 million (a decrease of 2% excluding foreign
exchange), as sales of ostomy products decreased 4% to $102 million partially offset by increases in wound care products of 2% to $56 million.
Medical device segment margin on earnings before taxes increased to 17.9% from 16.4%, resulting from decreases, as a percentage of sales, in
cost of products sold.
-9-
BRISTOL-MYERS SQUIBB COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cost of Products Sold and Operating Expenses
Total costs and expenses for the quarter ended March 31, 1999, as a percentage of sales, decreased to 69.6% from 70.9%. Cost of products sold
increased to 26.9% of sales from 25.9% in 1998 due to product mix shift to lower margin pharmaceutical products including GLUCOPHAGE,
AVAPRO, PLAVIX and OTN sales, as well as the impact from the decrease in sales of CAPOTEN*. Expenditures for advertising and
promotion in support of new and existing products decreased 7% to $529 million from $571 million primarily due to higher spending in 1998
for the PRAVACHOL* direct-to-consumer campaign, the January 1998 launch of EXCEDRIN* MIGRAINE and spending for the product
launches of AVAPRO and PLAVIX. Marketing, selling, administrative and other expenses increased 7% to $1,121 million. Research and
development expenditures increased 10% to $423 million from $383 million in 1998. Pharmaceutical research and development spending
increased 11% over the prior year, and as a percentage of pharmaceutical sales, was 12.0% in the first quarter of 1999 and 12.5% in the first
quarter of 1998. There are currently two filings pending before the U.S. Food and Drug Administration (FDA), for our anti- cancer agent
ORZEL*, an oral drug for colorectal cancer, and TEQUIN*, a broad-spectrum oral quinolone antibiotic. Additional filings are expected within
the year for omapatrilat, a novel antihypertensive.
Earnings
Earnings before income taxes for the first quarter increased 14% to $1,476 million from $1,292 million in 1998. The effective tax rate on
earnings before income taxes decreased to 27.8% in 1999 from 28.3% in 1998. The effective income tax rate has decreased due to increased
income in lower tax rate jurisdictions. Net earnings increased 15% to $1,066 million from $927 million. Basic earnings per share increased
15% to $.54 from $.47 in 1998 and diluted earnings per share increased 15% to $.53 from $.46 in 1998.
Financial Position
The balance sheet at March 31, 1999 and the statement of cash flows for the three months then ended reflect the Company's strong financial
position. The Company continues to maintain a high level of working capital increasing to $3.2 billion at March 31, 1999, from $3.0 billion at
December 31, 1998.
Long-Term Debt remained relatively constant, increasing slightly to $1,369 million from $1,364 million at December 1998.
-10-
Internally generated funds continue to be the Company's primary source for financing expenditures for new plant and equipment. Additions to
fixed assets for the three months ended March 31, 1999 were $122 million compared to $154 million during the same period of 1998
During the three months ended March 31, 1999, the Company purchased 6.6 million shares of its common stock at a total cost of $410 million.
During the first quarter of 1998, the Company divested its BAN brand of anti- perspirants and deodorants for $165 million, resulting in a gain
of $125 million before taxes. The Company also recorded a provision for restructuring of $125 million before taxes. The restructuring charge
primarily related to the consolidation and closure of plants and facilities as part of the Company's on-going productivity programs.
-11-
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders was held on May 4, 1999 for the purpose of:
A. election of directors;
B. ratification of the appointment of PricewaterhouseCoopers LLP as independent accountants for the year 1999;
C. approval to increase the number of authorized shares of Common Stock; and
D. voting on a stockholder-proposed resolution to recommend that the Board of Directors take the necessary steps to reinstate the annual
election of directors.
At the meeting, 1,691,417,987 shares of the Registrant's Common and $2 Convertible Preferred Stock were represented.
The following persons were elected to the Board of Directors of the Registrant at the meeting to serve until the year 2002 Annual Meeting:
Vance D. Coffman
Ellen V. Futter
Louis W. Sullivan, M.D.
Mr. Coffman received 1,664,609,135 votes for election, votes were withheld on proxies for 26,808,852 shares and there were no broker
non-votes. Ms. Futter received 1,665,072,808 votes for election, votes were withheld on proxies for 26,345,179 shares and there were no broker
non-votes. Dr. Sullivan received 1,663,682,348 votes for election, votes were withheld on proxies for 27,735,639 shares and there were no
broker non-votes.
Robert E. Allen, Lewis B. Campbell, Laurie H. Glimcher, M.D. and James D. Robinson III continue as directors with terms expiring at the
2000 Annual Meeting. Louis V. Gerstner, Jr., Charles A. Heimbold, Jr. Leif Johansson and Kenneth E. Weg continue as directors with terms
expiring at the year 2001 Annual Meeting.
The appointment of PricewaterhouseCoopers LLP was ratified by a vote of 1,680,808,862 shares in favor of the appointment, with 4,135,703
shares voting against, 6,473,418 shares abstaining and there were 4 broker non-votes.
An increase in the number of authorized shares of Common Stock was approved by a vote of 1,561,315,391 shares in favor of the increase,
with 121,090,888 shares voting against, 9,011,703 shares abstaining and 5 broker non-votes.
The stockholder-proposed resolution to recommend that the Board of Directors take the necessary steps to reinstate the annual election of
directors received a vote of 770,302,452 shares in favor, with 641,481,177 shares voting against, 25,328,539 shares abstaining and 254,305,819
broker non-votes.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits (listed by number corresponding to the Exhibit Table of Item 601 in Regulation S-K).
Exhibit Number and Description
-----------------------------27.
Page
-------
Bristol-Myers Squibb Company Financial Data Schedule.
b) Reports on Form 8-K.
The Registrant did not file any reports on Form 8-K during the quarter ended March 31, 1999.
-13-
E-27-1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRISTOL-MYERS SQUIBB COMPANY
(Registrant)
Date:
Date:
May 14, 1999
/s/ Harrison M. Bains, Jr.
---------------------------------Harrison M. Bains, Jr.
Vice President and Treasurer
May 14, 1999
/s/ Frederick S. Schiff
---------------------------------Frederick S. Schiff
Vice President Financial Operations
and Controller
-14-
ARTICLE 5
Exhibit 27 for Bristol-Myers Squibb Company for the period ended 3/31/99
MULTIPLIER: 1000000
PERIOD TYPE
3 Mos
FISCAL YEAR END
Dec 31 1999
PERIOD END
Mar 31 1999
CASH
SECURITIES
RECEIVABLES
ALLOWANCES
2003
280
3164
0
INVENTORY
1955
CURRENT ASSETS
8497
PP&E
7542
DEPRECIATION
3113
TOTAL ASSETS
15986
CURRENT LIABILITIES
5319
BONDS
1369
PREFERRED MANDATORY
0
PREFERRED
0
COMMON
219
OTHER SE
7531
TOTAL LIABILITY AND EQUITY
15986
SALES
4854
TOTAL REVENUES
4854
CGS
1305
TOTAL COSTS
1305
OTHER EXPENSES
LOSS PROVISION
INTEREST EXPENSE
INCOME PRETAX
INCOME TAX
INCOME CONTINUING
952
0
33
1476
410
1066
DISCONTINUED
0
EXTRAORDINARY
0
CHANGES
0
NET INCOME
1066
EPS PRIMARY
.54
EPS DILUTED
.53
1
2
1
Items reported as "zero" are not applicable or are immaterial to the consolidated financial position of the Company.
Receivables are reported net of allowances for doubtful accounts. E-27-1
2